Chair of LFEPA’s Unacceptable Response RE: AssetCo

Received: 21/08/2012 in response to my letter dated 20/08/2012

Dear Andrew

AssetCo plc

Thank you for your letter of 20 August 2012.

As I am sure you are aware, the Commissioner’s statement that this sale has no direct impact upon the Authority’s vehicle and equipment contract is set in the context of the serious concerns that we as an Authority already have about AssetCo’s ongoing financial stability and their performance against this contract.  These concerns are reflected in the recent decisions we took at the Authority meeting in June 2012, prior to this sale, to pursue a range of contractual remedies to ensure that this improves and the fleet replacement programme can be completed.  These decisions remain valid.

In the meantime, as you know, pumping appliance availability remains at over 99 per cent, the fleet and equipment remain in the ownership of Lloyds Bank and the vehicle workshop that AssetCo use to discharge the maintenance functions of the contract continues to be owned by LFEPA.  The Commissioner has full assurance from the bank that the fleet and equipment will continue be made available, without interruption, for the Authority’s use.

I am, of course, content that we can continue to guarantee access to the workshop facility that we own.  I therefore do not have additional concerns about the operation of this contract or the delivery of the fleet replacement programme as a result of this sale.

I am sure I do not need to remind you that it is LFEPA’s Resources Committee, on which you sit, that has the oversight responsibility for this contract.

Yours sincerely

James Cleverly AM